During your Chapter 13 bankruptcy repayment plan, your financial situation is much simpler because most of your monthly expenses will consist of a single payment to the bankruptcy trustee. Not only that, but this payment is also based on what you can afford.
The New Jersey Bankruptcy Court explains that because the trustee and the bankruptcy court approved the plan based on your circumstances, you must get permission before you take any action that may change them.
Selling your vehicle
Suppose you want to sell your vehicle. Whether or not you have an auto loan that you have included in your Chapter 13 debts, the sale of an asset that significant may change your situation. You will need to file a motion with the court and wait for approval before you put out a “for sale” sign, list your vehicle on the internet or offer it as a trade-in.
Selling your home
Relocating may be necessary for any number of reasons. However, your home is another major asset that you must seek court approval to sell. The court also requires you to ask for permission before you hire a real estate broker.
Making adjustments to debt
Perhaps the value of homes in your neighborhood has gone up, and you want to take advantage of the increased value by refinancing your home. Or, perhaps you need a new vehicle because your old one has become unreliable, but the only way you can do that is to take on another loan. Any time you need to refinance or add new debt, you will have to file for court approval before you make a change.
